Positive Signs As Multiple Insiders Buy American Public Education Stock

Positive Signs As Multiple Insiders Buy American Public Education Stock

Trade APEI on Coinbase

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of American Public Education, Inc. (NASDAQ:APEI), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for American Public Education

American Public Education Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Granetta Blevins bought US$102k worth of shares at a price of US$3.95 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.75. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$315k for 79.00k shares. But they sold 35.25k shares for US$213k. In total, American Public Education insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:APEI Insider Trading Volume March 3rd 2024

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does American Public Education Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that American Public Education insiders own 3.7% of the company, worth about US$7.2m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About American Public Education Insiders?

The fact that there have been no American Public Education insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if American Public Education insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for American Public Education and we suggest you have a look.